The W-2 Form for Calendar Year 2000

The University has recently mailed over 28,000 Calendar Year (CY) 2000
W-2 Forms to our employees' home addresses as they appear on the Payroll
File (Employee Database).

An explanation of the contents of the various boxes on the W-2 form is
as follows:

A. Wages, tips, other compensation:
this represents the total amount of Federal Taxable compensation paid or
imputed to you during Calendar Year 2000 through the University Payroll
System. This amount includes:

a. The value of your taxable graduate and/or professional tuition benefits,
if you, your spouse and/or your dependent children have received such benefits;

b. The value of Group Life Insurance coverage for amounts greater than
$50,000. The premium payments for this excess coverage, if any, have been
included as imputed income (see Excess Insurance Premium -
below);

Amounts which are excluded from this amount are:

c. Tax deferred annuity contributions (i.e., TIAA/CREF);

d. Health, Dental and Vision Care insurance premiums that have been
sheltered;

e. Amounts voluntarily contributed to a dependent care or a medical
reimbursement account. Also included this year are fees for Parking, Transit
Checks, TransPass and the Van Pool.

B. Federal income tax withheld: this
represents the amount of Federal Income tax which was withheld from your
earnings during the year and paid to the Internal Revenue Service, on your
behalf, by the University.

C. Dependent care benefits: this
represents the total amount which you have voluntarily "sheltered"
for dependent care expenses, regardless of whether you have been reimbursed
by the University for the expenses associated with this "shelter"
as of December 31, 2000.

D. Social security wages: this
represents the total amount of compensation paid to you during Calendar
Year 2000 which was subject to Social Security (FICA/OASDI) tax, including
all of your tax deferred annuity contributions and excess life insurance
premiums, if applicable, but excluding health and dental insurance premiums
and any voluntary dependent care or medical reimbursement account contributions
which you have "sheltered".

E. Social security tax withheld: this
represents the total amount of Social Security (FICA/OASDI) tax which was
withheld from your earnings during the year and paid to the Social Security
Administration, on your behalf, by the University.

F. Benefits included in box 1:
if you have received certain fringe benefits, the value of such benefits
is shown here, and is also included in Box 1, Wages, tips, other compensation.
These benefits include the value of taxable graduate and/or professional
tuition benefits and other benefits relating to imputed income. If you have
received any of these benefits the University has recently advised you,
individually and personally, concerning their taxability; please refer to
those communications specifically.

G. Medicare wages and tips: this
represents the total amount of compensation paid to you during Calendar
Year 2000 which was subject to Medicare tax, including all of your tax deferred
annuity contributions and excess life insurance premiums, if applicable,
but excluding health and dental insurance premiums and any voluntary dependent
care or medical reimbursement account contributions which you have "sheltered".

H. Medicare tax withheld:
this represents the total amount of Medicare tax which was withheld from
your earnings during the year and paid to the Social Security Administration,
on your behalf, by the University.

I. Excess insurance premium: the
Internal Revenue Service requires that the premiums paid by an employer
for group life insurance coverage in excess of $50,000 be imputed as income
to the employee. The amount which appears in Box 13 and labeled (C) is the
value of the premiums paid for this excess insurance coverage. This amount
is based on an Internal Revenue Service (IRS) table which identifies premiums
for different age groups.

J. Tax deferred annuity contributions:
this represents the total amount of contributions made by an employee to
a retirement plan on a tax-deferred basis. The amount is shown in Box 13
and labeled (E).

K. Excludable moving expense reimbursements:
this represents the nontaxable moving expenditures that were paid to you
as a reimbursement. The amount is shown in Box 13 and labeled (P). If any
reimbursements or third party payments were deemed to be taxable income
you were notified of these amounts under separate cover.

L. Employee's social security number:
this is the number that the Federal and State Governments use to identify
you with the tax returns that you file, so please review it for accuracy.
If the number is incorrect, then the University Payroll system is also inaccurate
and you should contact the Payroll Office, immediately, before you file
your returns.

M. State wages, tips, etc.:
this represents the total amount of compensation paid to you during Calendar
Year 2000 which was subject to Pennsylvania State Income Tax, including
all of your deferred annuity contributions, if applicable, but excluding
health and dental insurance premiums and any voluntary medical reimbursement
account contributions which you have "sheltered".

N. State income tax: this
represents the total amount of Pennsylvania State Income Tax withheld during
Calendar Year 2000 and paid to the Commonwealth of Pennsylvania, on your
behalf, by the University. If you do not live in Pennsylvania no amount
will be reflected in this box.

If you lived a portion of the year in the Commonwealth of Pennsylvania,
and another portion in New Jersey or Delaware, you will receive two W-2
forms, one showing the state taxes paid to the Commonwealth of Pennsylvania,
the other showing no taxes paid to the other jurisdiction.

O. Local wages, tips, etc.: this
represents the total amount of compensation paid to you during Calendar
Year 2000 which was subject to Philadelphia City Wage Tax, including all
of your deferred annuity contributions.

P. Local income tax: this
represents the total amount of Philadelphia City Wage Tax withheld from
your earnings during Calendar Year 2000 and paid to the City of Philadelphia,
on your behalf, by the University.

When you receive your W-2 form, please review it immediately to ensure
that your name is spelled correctly and that your Social Security number
is correct. If you feel that any information on your W-2 is incorrect, review
your calculations carefully and compare the information on the form with
your final 2000 pay stub.

If you have availed yourself of certain taxable benefits please review
any additional information which was provided to you, under separate cover,
concerning these benefits and their impact on your tax status. If you still
believe that your W-2 is in error, please contact the W-2 Office at (215)
573-3277 or write to W-2 Office, Room 310, Franklin Building /6284.

You should have received, via the U.S. Postal Service, your Federal and
State Income Tax Forms and related instructions for filing. Federal Tax
forms are available at the Internal Revenue Service, 600 Arch Street, Philadelphia,
or by calling (800) TAX-FORM. Pennsylvania Income Tax forms are available
at the State Office Building, 1400 Spring Garden Street, Philadelphia, or
by calling (888) PA-TAXES. Federal and State forms are also available at
many libraries and U.S. Post offices.